WUHAN CITY, CHINA -- (Marketwire) -- 05/12/11 -- Tianli Agritech, Inc. (NASDAQ: OINK) ('Tianli' or 'the Company'), a leading producer of breeder hogs and market hogs based in Wuhan City, China, today announced that on May 12, 2011 it successfully completed the acquisition of the assets of the AnPuluo Farm, a 20,000 annual head production hog farm in Enshi Tujia and Miao Autonomous Prefecture, which is located within the Hubei province.
The Company will pay an aggregate of approximately $2.2 million for rights to the land and equipment. Deposits aggregating $1.5 million will be retained by the seller, with the balance of the purchase price, $0.7 million, to be paid by July 15th, 2011. The Company expects to invest approximately $0.3 million in facility upgrades and approximately $0.4 to $0.6 million in breeding stock to bring the farm to full production and fully stocked by the second half of 2012.
'This acquisition is a significant milestone for our Company, making us one of the largest hog producers in Hubei province,' said Tianli's Chairwoman and CEO, Ms. Hanying Li. 'We estimate the payback period to be less than two years once the farm is fully stocked and shipping Tianli breeders and market hogs to our customers. We believe the AnPuluo Farm will be a strong addition to our growing portfolio of farms as we continue our expansion strategy and seek out further potential candidates to add to our growing network of farms.'
About Tianli Agritech, Inc.
Tianli Agritech, Inc. is in the business of breeding, raising and selling hogs in the People's Republic of China. The Company is focused on growing healthy hogs for sale for breeding and meat purposes. The Company conducts genetic, breeding and nutrition research to steadily improve its production capabilities. For more information about the Company, please visit http://www.tianli-china.com.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
Tianli Agritech, Inc.
Mr. Kuni Qiao
Ms. Zoe Guo
Mr. John Mattio
HC International, Inc.
Phone: (212) 730-7130